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Smith Products fabricates machine tools that are essentially identical

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Smith Products fabricates machine tools that are essentially identical  [#permalink]

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New post 05 Jan 2019, 07:03
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Smith Products fabricates machine tools that are essentially identical to those produced by Jackson Manufacturing. For both companies, raw materials represent about two-thirds of the cost of manufacturing the machine tools. To gain an edge over Jackson Manufacturing, Smith Products should purchase its raw materials from a new supplier advertising much lower prices.

Which of the following, if true, would most weaken the argument above?


A. Smith Products spends more on employee wages than Jackson Manufacturing does.

B. Smith's current supplier provides raw materials of exceedingly high quality.

C. The market for machine tools has been declining for several years.

D. The new suppliers materials are of low quality and would reduce the lifespan of Smith machine tools by half, causing sales to decline.

E. The plant manager for Smith Products is planning to increase the plant's efficiency.

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Re: Smith Products fabricates machine tools that are essentially identical  [#permalink]

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New post 05 Jan 2019, 07:07
IMO D

Conclusion: To gain an edge over Jackson Manufacturing, Smith Products should purchase its raw materials from a new supplier advertising much lower prices.

Prethink: if the quality of the raw material of new supplier are bad, which will result in decrease in quality of machine tool, thereby reducing the sales of smith ...this could hurt smith and fail the plan to exceed jackson
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Re: Smith Products fabricates machine tools that are essentially identical  [#permalink]

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New post 15 Jan 2019, 04:20
Bunuel wrote:
Smith Products fabricates machine tools that are essentially identical to those produced by Jackson Manufacturing. For both companies, raw materials represent about two-thirds of the cost of manufacturing the machine tools. To gain an edge over Jackson Manufacturing, Smith Products should purchase its raw materials from a new supplier advertising much lower prices.

Which of the following, if true, would most weaken the argument above?


A. Smith Products spends more on employee wages than Jackson Manufacturing does.

B. Smith's current supplier provides raw materials of exceedingly high quality.

C. The market for machine tools has been declining for several years.

D. The new suppliers materials are of low quality and would reduce the lifespan of Smith machine tools by half, causing sales to decline.

E. The plant manager for Smith Products is planning to increase the plant's efficiency.


KAPLAN OFFICIAL EXPLANATION:



D

The conclusion that Smith Products could gain an advantage by purchasing lower-cost raw materials is based on the evidence that raw materials represent the largest proportion of costs for both Smith and Jackson. For the conclusion to hold, Smith must assume the new raw materials will not have any other negative effects on its business. So, to weaken the argument, look for a choice that casts doubt on this assumption. (D) does so by stating that the low quality of the new materials will cause a drop in sales. If that occurs, using the new supplier will not create an advantage for Smith Products, and so (D) is the answer. (A) and (E) indicate other ways that Smith might gain an advantage, but they don't have any bearing on whether changing suppliers would create an advantage. (B) is similarly irrelevant; even if true, it doesn't provide any reason Smith should not use the new supplier. (C) is out of scope of the argument.
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Smith Products fabricates machine tools that are essentially identical  [#permalink]

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New post 21 Feb 2019, 22:53
Meaning: If Smith changes its raw material supplier to one that advertises much lower prices, then Smith will gain an edge over Jackson. (given that both Smith and Jackson fabricate essentially identical tools and that the cost of raw materials represents about two-thirds of the cost of manufacturing the tools).

Logic: Causal relationship: If Smith changes its raw material supplier to one that advertises much lower prices, then Smith will gain an edge over Jackson.

Weaken the argument:
1) for the given cause no effect is realized
2) the effect is realized for a different cause
3) for the given cause a different effect is realized

Answer: D (for the given cause a different effect is realized)
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Smith Products fabricates machine tools that are essentially identical   [#permalink] 21 Feb 2019, 22:53
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